Financial literacy?

By Chirsteen Haddadin
Certified Money Coach

We go to school for 15 to 20 years and learn about dozens of subjects, including science, maths, literature — everything but money. Then we graduate and spend the rest of our lives trying to make money. 

Today governments are waking up to the big gap in the traditional education system. Have you?

The importance of financial literacy

Financial Literacy is building the skills and tools we need to manage our finances- just like we built a basic understanding of taking care of our health; A good example would be our knowledge about COVID-19. Last year, we had no idea such a virus existed and in a less than a year we were able to learn about it; how it is transmitted, what the symptoms are and how to protect ourselves. Even without a medical degree, we could build the knowledge that serves us in our daily routine.

The same logic applies to many things in our lives. For instance, to own a car, we don’t have to be car experts or mechanics who understand how the engine works, but we need to know when, where and how to maintain it. We build knowledge that serves us in our daily routine.

Why should I care about financial literacy?

Money is a tool that we use daily and think about often. A lot of our decisions around money dictate our lifestyle and the options and choices we have. Building Financial Literacy would mean gaining basic knowledge, learning basic skills and tools that will allow us to make purposeful and conscious decisions about money.

Imagine a life where we are pro-actively managing our finances; we are aware of our spending, we have specific financial goals that we are working towards, our loans are light and well-managed, we have emergency money set aside and we have investments that grow our wealth. How does that sound? Financial Literacy can help us actively take charge of our money and direct it in a way that serves our goals and us.

Where do I start?

Starting to build Financial Literacy might seem overwhelming. There is so much knowledge out there and the world of money is full of fancy jargon and complicated terms. Again, keep in mind that what you are looking to learn about is related to your personal finances. 

A good place to start is building knowledge around four main concepts that are the basics of personal finance: 

• Personal budgeting

• Debt

• Emergency

• Funds Saving and investment funds

So many resources explaining the above concepts are available online for free through videos, articles and podcasts. Social media offers tips, ideas and advice on personal finance too. I also recommend asking for advice and guidance — reach out to your bank, to financial advisors and money coaches. There are qualified people out there who can assist you and add value to your financial literacy journey.

Reprinted with permission from Family Flavours magazine